Collaborative Innovation in the Family SME: Conceptualization, Goals, and Success Factors

Unai Arzubiaga; Amaia Maseda; Amaia Uribarri; Jesús-Manuel Palma-Ruiz

doi:10.24310/ejfbejfb.v9i2.5265

Authors

Unai Arzubiaga University of the Basque Country (UPV/EHU) Spain https://orcid.org/0000-0001-9914-9881
Amaia Maseda University of the Basque Country (UPV/EHU) Spain https://orcid.org/0000-0001-6096-538X
Amaia Uribarri University of the Basque Country (UPV/EHU) Spain https://orcid.org/0000-0003-1352-7517
Jesús-Manuel Palma-Ruiz Universidad Autónoma de Chihuahua (México) Mexico https://orcid.org/0000-0002-1039-6243

DOI:

https://doi.org/10.24310/ejfbejfb.v9i2.5265

Keywords:

Collaborative innovation, Family SME, Innovative capabilities, Innovative attitudes, Management team

Agencies: NO

Abstract

In a constantly changing environment, collaborative innovation enables the knowledge creation and new product designs, the improved efficiency of the production process and the reduction of time-to-market. However, the achievement of such results in the family SME depends mainly on the unique characteristics of this type of organization, which in turn represent the most widespread kind of business worldwide. Therefore, the objective of this article is to analyze how the composition of the management team, and the factors related to the capabilities –cognitive factors, absorptive capacity, and innovative trajectory- and the attitudes –preservation of SEW legacy and intra-organizational behavior- of the decision makers, mediated mainly by the influence of the family, affect when designing and implementing collaborative innovation processes in a successful way.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

Adler, P. S., and Kwon, S. W. (2002). Social capital: Prospects for a new concept. Academy of Management Review, 27(1), 17-40.

Ahuja, G., and Katila, R. (2004). Where do resources come from? The role of idiosyncratic situations. Strategic Management Journal, 25(8?9), 887-907.

Alexiev, A. S., Jansen, J. J., Van den Bosch, F. A., and Volberda, H. W. (2010). Top management team advice seeking and exploratory innovation: The moderating role of TMT heterogeneity. Journal of Management Studies, 47(7), 1343-1364.

Anderson, R. C., and Reeb, D. M. (2003). Founding-family ownership and firm performance: evidence from the SandP 500. The Journal of Finance, 58(3), 1301-1328.

Arzubiaga, U., Iturralde, T., Maseda, A., and Kotlar, J. (2018). Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors. International Entrepreneurship and Management Journal, 14(1), 217-244.

Arzubiaga, U. (2019). Gobernanza corporativa y orientación emprendedora de las pymes familiares: un análisis de la influencia de la implicación familiar a distintos niveles. Cuadernos de Gestión, 19(1), 119-145.

Arzubiaga, U., Kotlar, J., De Massis, A., Maseda, A., and Iturralde, T. (2018). Entrepreneurial orientation and innovation in family SMEs: unveiling the (actual) impact of the Board of Directors. Journal of Business Venturing, 33(4), 455-469.

Arzubiaga, U., Maseda, A., and Iturralde, T. (2019). Exploratory and exploitative innovation in family businesses: the moderating role of the family firm image and family involvement in top management. Review of Managerial Science,13(1), 1-31.

Baldwin, C., and von Hippel, E. (2011). Modeling a paradigm shift: From producer innovation to user and open collaborative innovation. Organization Science, 22(6), 1399–1417.

Bourdieu, P. (1986). The forms of capital. In J. Richardson (Ed.), Handbook of Theory and Research for the Sociology of Education. New York: Greenwood, 241-258.

Brinkerink, J., and Bammens, Y. (2018). Family influence and RandD spending in Dutch manufacturing SMEs: The role of identity and socioemotional decision considerations. Journal of Product Innovation Management, 35(4), 588-608.

Casillas, J. C., Moreno, A. M., and Barbero, J. L. (2011). Entrepreneurial orientation of family firms: Family and environmental dimensions. Journal of Family Business Strategy, 2(2), 90-100.

Casillas, J. C., Moreno, A. M., and Barbero, J. L. (2010). A configurational approach of the relationship between entrepreneurial orientation and growth of family firms. Family Business Review, 23(1), 27-44.

Casprini, E., De Massis, A., Di Minin, A., Frattini, F., and Piccaluga, A. (2017). How family firms execute open innovation strategies: the Loccioni case. Journal of Knowledge Management, 21(6), 1459-1485.

Chang, Y., Hughes, M., and Hotho, S. (2011). Internal and external antecedents of SMEs' innovation ambidexterity outcomes. Management Decision, 49(10), 1658-1676.

Chirico, F. (2008). Knowledge accumulation in family firms evidence from four case studies. International Small Business Journal, 26(4), 433-462.

Chirico, F., Sirmon, D. G., Sciascia, S., and Mazzola, P. (2011). Resource orchestration in family firms: Investigating how entrepreneurial orientation, generational involvement, and participative strategy affect performance. Strategic Entrepreneurship Journal, 5(4), 307-326.

Chrisman, J. J., Chua, J. H., Pearson, A. W., and Barnett, T. (2012). Family involvement, family influence, and family-centered non-economic goals in small firms. Entrepreneurship Theory and Practice, 36(2), 267-293.

Chrisman, J. J., Chua, J. H., and Sharma, P. (2005). Trends and directions in the development of a strategic management theory of the family firm. Entrepreneurship Theory and Practice, 29(5), 555-576.

Chrisman, J. J., Fang, H., Kotlar, J., and De Massis, A. (2015). A note on family influence and the adoption of discontinuous technologies in family firms. Journal of Product Innovation Management, 32(3), 384-388.

Chua, J. H., Chrisman, J. J., and De Massis, A. (2015). A closer look at socioemotional wealth: Its flows, stocks, and prospects for moving forward. Entrepreneurship Theory and Practice, 39(2), 173-182.

Chua, J. H., Chrisman, J. J., and Sharma, P. (1999). Defining the family business by behavior. Entrepreneurship: Theory and Practice, 23(4), 19-19.

Classen, N., Van Gils, A., Bammens, Y., and Carree, M. (2012). Accessing resources from innovation partners: The search breadth of family SMEs. Journal of Small Business Management, 50(2), 191-215.

Cohen, W. M., and Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35, 128-152.

Corsaro, D., Cantù, C., and Tunisini, A. (2012). Actors' heterogeneity in innovation networks. Industrial Marketing Management, 41, 780–789.

Cruz, C., and Nordqvist, M. (2012). Entrepreneurial orientation in family firms: A generational perspective. Small Business Economics, 38(1), 33-49.

Davis, J. P., and Eisenhardt, K. M. (2011). Rotating leadership and collaborative innovation: Recombination processes in symbiotic relationships. Administrative Science Quarterly, 56(2), 159-201.

Dawson, A., and Mussolino, D. (2014). Exploring what makes family firms different: Discrete or overlapping constructs in the literature?. Journal of Family Business Strategy, 5(2), 169-183.

De Clercq, D., and Belausteguigoitia, I. (2015). Intergenerational strategy involvement and family firms’ innovation pursuits: The critical roles of conflict management and social capital. Journal of Family Business Strategy, 6(3), 178-189.

De Massis, A., Chirico, F., Kotlar, J., and Naldi, L. (2013). The temporal evolution of proactiveness in family firms: The horizontal S-curve hypothesis. Family Business Review, 27(1), 35-50.

De Massis, A., Frattini, F., and Lichtenthaler, U. (2012). Research on technological innovation in family firms: Present debates and future directions. Family Business Review, 26(1), 10-31

Debicki, B. J., Kellermanns, F. W., Chrisman, J. J., Pearson, A. W., and Spencer, B. A. (2016). Development of a socioemotional wealth importance (SEWi) scale for family firm research. Journal of Family Business Strategy, 7(1), 47-57.

Duran, P., Kammerlander, N., Van Essen, M., and Zellweger, T. (2016). Doing more with less: Innovation input and output in family firms. Academy of Management Journal, 59(4), 1224-1264.

Faems, D., van Looy, B., and Debackere, K. (2005). Interorganizational collaboration and innovation: Toward a portfolio approach. Journal of Product Innovation Management, 22, 238–250.

Fang, H., Kotlar, J., Memili, E., Chrisman, J. J., and De Massis, A. (2018). The pursuit of international opportunities in family firms: Generational differences and the role of knowledge?based resources. Global Strategy Journal, 8(1), 136-157.

Feranita, F., Kotlar, J., and De Massis, A. (2017). Collaborative innovation in family firms: Past research, current debates, and agenda for future research. Journal of Family Business Strategy. 8(3), 137-156.

Filip, D., Hansen, B. D., and Frølunde, T. T. (2016). Interaction enablers, drivers and barriers of collaborative innovation projects between small firms and academia. 7 Challenging traditional leadership behaviors in a distributed and ambiguous knowledge-intensive work environment, 25.

Franke, N., Schreier, M., and Kaiser, U. (2010). The “I designed it myself” effect in mass customization. Management Science, 56(1), 125-140.

Fuchs, C., and Schreier, M. (2011). Customer empowerment in new product development. Journal of Product Innovation Management, 28(1), 17-32.

Galán, J. L., and Castro, I. (2004). Las relaciones interorganizativas como fuente de capital social, Universia Business Review, 2(2), 104-117.

Ganesan, S., George, M., Jap, S., Palmatier, R. W., and Barton, W. (2009). Supply chain management and retailer performance: Emerging trends, issues, and implications for research and practice. Journal of Retailing, 85, 84–94.

Gedajlovic, E., Lubaktin, M. H., and Schulze, W. S. (2004). Crossing the Threshold from Founder Management to Professional Management: A Governance Perspective. Journal of Management Studies, 41(5), 899- 912.

George, G. (2005). Slack resources and the performance of privately held firms. Academy of Management Journal, 48(4), 661-676.

Gersick, K. E., and Feliu, N. (2014). Governing the family enterprise: Practices, performance, and research. In L. Melin, M. Nordqvist, and P. Sharma (Eds.), SAGE handbook of family business. Thousand Oaks, CA: SAGE

Goel, S., and Jones III, R. J. (2016). Entrepreneurial exploration and exploitation in family business: A systematic review and future directions. Family Business Review, 29(1), 94-120.

Gómez-Mejía, L. R., Haynes, K. T., Núñez-Nickel, M., Jacobson, K. J., and Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52(1), 106-137.

Gomez?Mejia, L. R., Makri, M., and Kintana, M. L. (2010). Diversification decisions in family?controlled firms. Journal of Management Studies, 47(2), 223-252.

Gulati, R., Nohria, N., and Zaheer, A. (2000). Strategic networks. Strategic Management Journal, 21(3), 203-215.

Habbershon, T. G., Nordqvist, M., and Zellweger, T. (2010). Transgenerational entrepreneurship. Transgenerational entrepreneurship: Exploring growth and performance in family firms across generations, 1-38.

Haefliger, S. (2012). Collaborative Innovation Strategy, Technology, and Social Practice (Habilitation Thesis). ETH Zurich Research Collection.

Hall, A., Melin, L., Nordqvist, M. (2001). Entrepreneurship as Radical Change in the Family Business: Exploring the Role of Cultural Patterns, Family Business Review, 14(3), 193-2008.

Hibbert, P., and Huxham, C. (2010). The past in play: Tradition in the structures of collaboration. Organization Studies, 31(5), 525-554.

Hiebl, M. R. (2015). Family involvement and organizational ambidexterity in later-generation family businesses: A framework for further investigation. Management Decision, 53(5), 1061-1082.

Hitt M. A., Ireland R. D., Camp S. M., and Sexton D. L. (2001). Strategic entrepreneurship: entrepreneurial strategies for wealth creation. Strategic Management Journal, 22(6–7), 479–491.

Holmen, E., Aune, T. B., and Pedersen, A. C. (2013). Network pictures for managing key supplier relationships. Industrial Marketing Management, 42(2), 139–151.

Holt, D. T., and Daspit, J. J. (2016). Diagnosticar la disposición para la innovación en las empresas familiares. Harvard Deusto Business Review, (257), 36-50.

Instituto de Empresa Familiar de España (2016). http://www.iefamiliar.com/cifras/1 (accessed 12.03.17)

Ireland, R. D., and Webb, J. W. (2007). Strategic entrepreneurship: Creating competitive advantage through streams of innovation. Business Horizons, 50(1), 49-59.

Jensen, M. B., Johnson, B., Lorenz, E., and Lundvall, B. Å. (2007). Forms of knowledge and modes of innovation. Research Policy, 36(5), 680-693.

Katila, R., and Ahuja, G. (2002). Something old, something new: A longitudinal study of search behavior and new product introduction. Academy of Management Journal, 45(6), 1183-1194.

Katz, R., and Allen, T. J. (1982). Investigating the Not Invented Here (NIH) syndrome: A look at the performance, tenure, and communication patterns of 50 R and D Project Groups. RandD Management, 12(1), 7-20.

Kellermanns, F. W., and Eddleston, K. A. (2006). Corporate entrepreneurship in family firms: A family perspective. Entrepreneurship Theory and Practice, 30(6), 809-830.

Kellermanns, F. W., Eddleston, K. A., Barnett, T., and Pearson, A. (2008). An exploratory study of family member characteristics and involvement: Effects on entrepreneurial behavior in the family firm. Family Business Review, 21(1), 1-14.

Ketchen, D. J., Ireland, R. D., and Snow, C. C. (2007). Strategic entrepreneurship, collaborative innovation, and wealth creation. Strategic Entrepreneurship Journal, 1(3?4), 371-385.

König, A., Kammerlander, N., and Enders, A. (2013). The family innovator's dilemma: How family influence affects the adoption of discontinuous technologies by incumbent firms. Academy of Management Review, 38(3), 418-441.

Kontinen, T., and Ojala, A. (2011). Network ties in the international opportunity recognition of family SMEs. International Business Review, 20(4), 440-453.

Kotlar, J., and De Massis, A. (2013). Goal setting in family firms: Goal diversity, social interactions, and collective commitment to family-centered goals. Entrepreneurship Theory and Practice, 37(6), 1263-1288.

Kotlar, J., De Massis, A., Frattini, F., and Kammerlander, N. (2019). Motivation gaps and implementation traps: The paradoxical and time?varying effects of family ownership on firm absorptive capacity. Journal of Product Innovation Management, 1-31

Kotlar, J., De Massis, A., Wright, M., and Frattini, F. (2018). Organizational goals: antecedents, formation processes and implications for firm behavior and performance. International Journal of Management Reviews, 20, S3-S18.

Kraiczy, N. D., Hack, A., and Kellermanns, F. W. (2014). New product portfolio performance in family firms. Journal of Business Research, 67(6), 1065-1073.

Le Breton-Miller, I., and Miller, D. (2006). Why do some family businesses out-compete? Governance, long-term orientations, and sustainable capability. Entrepreneurship Theory and Practice, 30(6), 731-746.

Ling, Y., and Kellermanns, F. W. (2010). The effects of family firm-specific sources of TMT diversity: The moderating role of information exchange frequency. Journal of Management Studies, 47(2), 322-344.

Litz, R. A., and Kleysen, R. F. (2001). Your old men shall dream dreams, and your young men shall see visions: Toward a theory of family firm innovation with help from the Brubeck family. Family Business Review, 14(4), 335-351.

Lozano-Posso, M., and Urbano, D. (2017). Relevant Factors in the Process of Socialization, Involvement, and Belonging of Descendents in Family Businesses. Revista Innovar Journal Revista de Ciencias Administrativas y Sociales, 26(63), 61-76.

Lumpkin, G. T., Brigham, K. H., and Moss, T. W. (2010). Long-term orientation: Implications for the entrepreneurial orientation and performance of family businesses. Entrepreneurship and Regional Development, 22(3-4), 241-264.

Magistretti, S., Dell’Era, C., De Massis, A., and Frattini, F. (2019). Exploring the relationship between types of family involvement and collaborative innovation in design-intensive firms: insights from two leading players in the furniture industry. Industry and Innovation, 26(10),1121-1151.

Mahto, R. V., Davis, P. S., Pearce, I. I., John, A., and Robinson Jr, R. B. (2010). Satisfaction with firm performance in family businesses. Entrepreneurship Theory and Practice, 34(5), 985-1001.

Marcel, J. J., Barr, P. S., and Duhaime, I. M. (2010). The influence of executive cognition on competitive dynamics. Strategic Management Journal, 32, 115–138.

Mazzi, C. (2011). Family business and financial performance: Current state of knowledge and future research challenges. Journal of Family Business Strategy, 2(3), 166-181.

Menon, T. and Pfeffer, J. (2003). ‘Valuing internal vs. external knowledge: explaining the preference for outsiders.' Management Science, 49, 497–513.

Miles, R. E., Miles, G., and Snow, C. C. (2005). Collaborative entrepreneurship: How communities of networked firms use continuous innovation to create economic wealth. Stanford University Press.

Min, S., Roath, A. S., Daugherty, P. J., Genchev, S. E., Chen, H., Arndt, A. D., and Richey, R. G. (2005). Supply chain collaboration: What's happening? International Journal of Logistics Management, 16, 237–256.

Minichilli, A., Corbetta, G., and MacMillan, I. C. (2010). Top management teams in family-controlled companies: ‘familiness,' ‘faultlines,' and their impact on financial performance. Journal of Management Studies, 47(2), 205-222.

Muñoz-Bullón, F., Sanchez-Bueno, M. J., and De Massis, A. (2019). Combining Internal and External R&D: The Effects on Innovation Performance in Family and Nonfamily Firms. Entrepreneurship Theory and Practice, 1042258719879674.

Nahapiet, J., and Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2), 242-266.

Naldi, L., Nordqvist, M., Sjöberg, K., and Wiklund, J. (2007). Entrepreneurial orientation, risk-taking, and performance in family firms. Family Business Review, 20(1), 33-47.

Negocios en Navarra (2016). Available online: http://www.negociosennavarra.com/mercadona-impulsa-la-innovacion-colaborativa-proveedores/

Nordqvist, M., Sharma, P., and Chirico, F. (2014). Family firm heterogeneity and governance: A configuration approach. Journal of Small Business Management, 52(2), 192-209.

Öberg, C. (2016). What creates a collaboration-level identity? Journal of Business Research, 69(9), 3220–3230.

Paunov, C. (2012). The global crisis and firms’ investments in innovation. Research Policy, 41(1), 24-35.

Pattikawa, L. H., Verwaal, E., and Commandeur, H. R. (2006). Understanding new product project performance. European Journal of Marketing, 40(11/12), 1178-1193.

Pearson, A.W., Carr, J. C., and Shaw, J. C. (2008). Toward a theory of familiness: a social capital perspective. Entrepreneurship Theory and Practice, 32(6), 949-969.

Reagans, R., Zuckerman, E., and McEvily, B. (2004). How to make the team: Social networks vs. demography as criteria for designing effective teams. Administrative Science Quarterly, 49(1), 101-133.

Rodan, S., and Galunic, C. (2004). More than network structure: How knowledge heterogeneity influences managerial performance and innovativeness. Strategic Management Journal, 25(6), 541-562.

Rondi, E., De Massis, A., and Kotlar, J. (forthcoming). Unlocking innovation potential: A typology of family business innovation postures and the critical role of the family system. Journal of Family Business Strategy. 1-13.

Roxas, S.A., Piroli, G., and Sorrentino, M. (2011). Efficiency and evaluation analysis of a network of technology transfer brokers, Technology Analysis and Strategic Management, 23(1), 7-24.

Roy, S., and Sivakumar, K. (2010). Innovation generation in upstream and downstream business relationships. Journal of Business Research, 63(12), 1356–1363.

Rumball, D. (2007). Case studies of collaborative innovation in Canadian small firms. Small Business Policy Branch, Industry Canada.

Sánchez-Famoso, V., Iturralde, T., and Maseda, A. (2015). The Influence of Family and Non-Family Social Capital on Firm Innovation: Exploring the Role of Family Ownership, European Journal of International Management, 9(2), 1-15.

Sánchez-Famoso, V., Maseda, A., and Iturralde, T. (2017). Family involvement in top management team: impact on relationships between internal social capital and innovation, Journal of Management and Organization, 23(1), 136-162.

Sciascia, S., Mazzola, P., and Chirico, F. (2013). Generational involvement in the top management team of family firms: Exploring nonlinear effects on entrepreneurial orientation. Entrepreneurship Theory and Practice, 37(1), 69-85.

Seibert, S. E., Kraimer, M. L., and Liden, R. C. (2001). A social capital theory of career success. Academy of Management Journal, 44(2), 219-237.

Skippari, M., Laukkanen, M., and Salo, J. (2017). Cognitive barriers to collaborative innovation generation in supply chain relationships. Industrial Marketing Management, 62, 108-117.

Souder, D., Zaheer, A., Sapienza, H., and Ranucci, R. (2016). How family influence, socioemotional wealth, and competitive conditions shape new technology adoption. Strategic Management Journal, 38(9), 1774-1790.

Spithoven, A., Vanhaverbeke, W., and Roijakkers, N. (2013). Open innovation practices in SMEs and large enterprises. Small Business Economics, 41(3), 537-562.

Steiger, T., Duller, C., and Hiebl, M. R. (2015). No consensus in sight: an analysis of ten years of family business definitions in empirical research studies. Journal of Enterprising Culture, 23(1), 25-62.

Street, C. T., and Cameron, A. F. (2007). External relationships and the small business: A review of small business alliance and network research. Journal of Small Business Management, 45(2), 239-266.

Swink, M. (2006). Building collaborative innovation capability. Research-Technology Management, 49, 37-47

Talke, K., Salomo, S., and Rost, K. (2010). How top management team diversity affects innovativeness and performance via the strategic choice to focus on innovation fields. Research Policy, 39(7), 907-918.

Tsai, S. P. (2009). Modeling strategic management for cause-related marketing. Marketing intelligence and planning, 27(5), 649-665.

Un, C. A., Cuervo-Cazurra, A., and Asakawa, K. (2010). R&D collaborations and product innovation. Journal of Product Innovation Management, 27(5), 673–689.

Veider, V., and Matzler, K. (2015). The ability and willingness of family-controlled firms to arrive at organizational ambidexterity. Journal of Family Business Strategy, 7(2), 105-116.

Venkatesh, S., and Yadav, M. S. (2011). Innovations in retailing. Journal of Retailing, 87S(1), S1–S2.

Vieira, E. S. (2014). Corporate risk in family businesses under economic crisis. Revista Innovar Journal Revista de Ciencias Administrativas y Sociales, 24(53), 61-73.

Von Hippel, E., and Krogh, G. V. (2003). Open source software and the “private-collective” innovation model: Issues for organization science. Organization Science, 14(2), 209-223.

Zahra, S. A. (2005). Entrepreneurial risk-taking in family firms. Family Business Review, 18(1), 23-40.

Zahra, S. A., and George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27(2), 185-203.

Zellweger, T. (2007). Time horizon, costs of equity capital, and generic investment strategies of firms. Family Business Review, 20(1), 1-15.

Zellweger, T. M., Eddleston, K. A., and Kellermanns, F. W. (2010). Exploring the concept of familiness: Introducing family firm identity. Journal of Family Business Strategy, 1(1), 54-63.

Zúñiga-Vicente, J. Á., Alonso-Borrego, C., Forcadell, F. J., and Galán, J. I. (2014). Assessing the effect of public subsidies on firm RandD investment: a survey. Journal of Economic Surveys, 28(1), 36-67.